The court found that the law's provision fixing annual rents at a specific percentage of the property's value at the time of licensing violated constitutional principles. The court argued that this provision unfairly restricted landlords' rights, particularly in light of rising inflation and changing economic conditions.
The court's decision will likely
have significant implications for both landlords and tenants in Egypt. While it
allows landlords more flexibility to increase rents, it also raises concerns
about potential rent hikes and affordability for tenants.
The ruling will take effect after the current legislative session of the House of Representatives concludes. This delay is intended to give lawmakers time to consider potential legislative changes to regulate rental rates and protect tenant rights.